N1,490/$: Naira to Dollar Exchange Rate Gap Widens
- The Nigerian currency has weakened against the dollar in the parallel (black) market foreign exchange market
- Checks shows that the current level of the naira in the unofficial market has created the widest gap between official, black market
- Although the official market recorded a modest appreciation in its last trading day, foreign exchange trading remained under pressure
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Naira was sold at N1,490 per dollar in the unofficial foreign exchange market also known as the black market on Sunday, January 18, Legit.ng can confirm.
Currency dealers said that the dollar exchanged at between N1,489 and N1,490 in the parallel market, compared with about N1,477 recorded on January 9.
Source: Getty Images
Official market shows marginal improvement
Despite the pressure on the black market, the naira recorded a slight appreciation in the official window.
CBN data showed that the Nigerian Foreign Exchange Market (NFEM) closed at N1,417.95 per dollar on Friday, improving from N1,424.5 per dollar a week earlier.
The opposite movement of both the forex markets has widened the gap between the parallel and official markets to N73, the largest since February 2025.
Although there is hope of further appreciation for the naira and less pressure in the market as the CBN reported that foreign exchange reserves rose to $45.8 billion, from $45.6 billion the previous week, supported by inflows from oil exports and portfolio investments.
However, for now, strong demand for foreign exchange continues to outweigh supply, keeping pressure on the naira across both FX windows.
CBN reduces BDC operators
For better control of the FX market, the Central Bank of Nigeria (CBN) has granted final licences to 82 Bureaux De Change (BDCs) to operate with effect from Nov. 27.
A statement issued in Abuja on Monday by Mrs Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department, stated that the exercise was in line with its powers conferred under the Bank and Other Financial Institutions Act (BOFIA) 2020.
Source: Getty Images
According to Sidi-Ali, it is also an enforcement of the Regulatory and Supervisory Guidelines for BDC Operations in Nigeria 2024.
She said:
“From the effective date, only Bureau de Change (BDC) operators listed on the CBN’s website are permitted to conduct business. “The CBN will regularly update the list of BDCs with valid licences for public verification at www.cbn.gov.ng. “The public is advised to refrain from transacting with unlicensed foreign exchange operators.”
10 reasons naira could weaken, strengthen in 2026
Earlier, Legit.ng reported that naira could experience a mixed performance in 2026, with analysts pointing to a range of domestic and external factors that may either support currency stability or trigger renewed pressure.
Analysts say several developments could help boost the naira’s value in 2026:
Despite potential support for the Nigerian currency, several risks could put the naira under pressure in 2026:
Source: Legit.ng
